9. Insurance

All sensible businessmen now insure goods for the full value in order to obtain indemnity in case of damage or loss. Insurance is against such risk as fire, damage by water or breakage.

e.g. Insurance should be done with a first class insurance company by the Sellers and for their own account upon such terms that the Buyers should be entitled to claim directly from the insurance company and provide the Buyers with an Insurance Policy or other evidence of insurance covering door-to-door terms against usual risks including damages caused by breakage, theft of whole package or parts, and non-delivery of whole packages in the cases mentioned above irrespective of the percentage of damage. Insurance should be done on the total amount of the goods plus 10%.

10. Force-Majeure

Every contract contains a Force-Majeure clause. Force-majeure is a force against which you cannot act or fight: natural disasters such as an earthquake, flood and fire; war, embargo and other sanctions.

e.g. The Parties are released from their responsibility for partial or complete non-execution of their obligations should they be caused by the force-majeure circumstances including, but not limited to: fire, flood, earthquake, and if these circumstances have had a direct damaging effect on the execution of the present Contract. The Party which is unable to fulfill its obligations is to inform the other Party within 10 days from the beginning of force-majeure circumstances.

11. Arbitration

e.g. The Seller and the Buyer will take all possible measures to settle amicably any disputes or differences which may arise out of the present Contract or in connection with it. If the Parties do not come to an agreement, all the disputes are to be submitted for Arbitration in Stockholm, Sweden, in accordance with the rules and regulations of the Chamber of Commerce.

12. Other Conditions

e.g. Any changes or supplements to the terms and conditions of this Contract shall be valid only in a written document duly signed by authorized representatives of both Parties.

The Contract becomes effective and comes into full force from the date of signing.

TERMS OF DELIVERY (INCOTERMS)

Most frequently used terms of delivery are:

FOB (свободно на борту судна)

FOB means «Free on Board. The goods are placed on board the ship by the seller at a port of shipment named in the sales contract. The risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail.

CIF (стоимость, страхование, фрахт)

GIF means «Cost, Insurance and Freight. This term is basically the same as С & F but with the addition that the seller has to procure marine insurance against the risk of loss of or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

EX Works (франко-завод, с завода)

«Ex Works» means that the seller's only responsi­bility is to make the goods available at his premises (i.e. works or factory). In particular he is not responsible for loading the goods in the vehicle provided by the buyer, unless otherwise agreed. The buyer bears the full cost and risk involved in bringing the goods from there to the desired destination. This term thus represents the minimum obligation for the seller.

FAS (свободно вдоль борта судна)

FAS means «Free Alongside Ship. Under this term the seller's obligations are fulfilled when the goods have been placed alongside the ship on the quay or in lighters. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.

C&F (стоимость и фрахт)

С & F means «Cost and Freight». The seller must pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment.

ASSIGNMENTS: